Introduction
Illegal construction has been a long-standing issue in Serbia, which the legislator has attempted to resolve on several occasions by adopting a series of laws aimed at the legalization of unlawfully constructed buildings. The most recent among them is the Law on the Legalization of Buildings adopted in 2015, which introduced a specific legalization procedure intended as a permanent solution for a vast number of illegally constructed buildings. However, over the ten years of its implementation, the law has not produced the expected results, nor has it prevented further unlawful construction.
Despite the strong intent to bring illegally constructed buildings into a legal framework – thus enabling factual owners to exercise full ownership rights – the issue of illegal construction remains highly relevant, and the topic of legalization and regularization continues to attract significant public attention.
The lack of legal security in property relations, as a consequence of illegal construction, has resulted in blocked real estate transactions, hindered investments, complicated inheritance procedures, and prevented the use of property as collateral. At the same time, it has created social insecurity for a large number of households that physically reside in buildings they legally do not own.
According to available data, approximately 4.9 million real estate units are currently registered in the Real Estate Cadastre, while 4.8 million remain unregistered, of which:
- Around 2.1 million buildings were constructed illegally (subject to legalization)
- Approximately 2.7 million buildings were legally constructed but not registered in the Real Estate Cadastre.
These circumstances prompted the legislator to once again address the issue of legalization by introducing a new approach based on an accelerated, centralized, and digital registration process. This approach is outlined in the Law on Special Conditions for the Registration of Rights to Real Estate, which is currently in parliamentary procedure as a draft law.
Purpose of the law
The goal of the law is to ensure that all unlegalized buildings across the Republic of Serbia are first recorded and then registered in the Real Estate Cadastre under their factual owners.
The subject of registration and record-keeping includes:
- Buildings, parts of buildings, or special units constructed contrary to the law;
- Buildings or parts thereof constructed, or works carried out, without a valid construction permit (including reconstruction, renovation, adaptation, change of use, etc.);
- Buildings for which temporary construction permits were issued before May 13, 2003, such as toll stations or temporary roads;
- Buildings constructed at a time when no construction permit was required, and for which ownership has not been recorded in the cadastre;
- Residential buildings of categories “A” and “B” and commercial buildings with an issued construction permit, but for which the statutory deadline for obtaining an occupancy permit has expired;
- Underground and above-ground installations and linear infrastructure objects, if subject to registration in the Real Estate or Infrastructure Cadastre;
- Buildings for which legalization procedures were initiated under previous laws but not yet recorded in the property register;
- Buildings registered under the Law on Special Conditions for Registration of Ownership Rights to Buildings Constructed Without a Building Permit;
- The land beneath such buildings or the portion of the cadastral parcel on which the building is constructed.
A prerequisite for registering illegally constructed buildings is that they are built on construction land and are visible on satellite images made for the territory of the Republic of Serbia and/or recorded in databases maintained by the National Agency for Spatial Planning and Urbanism and the Republic Geodetic Authority.
Building constructed on public land
Buildings erected on public land, within national parks and protected zones, on water property, within railway corridors, in sanitary protection zones of water sources, within expropriation zones of state highways or expressways, as well as buildings with unknown investors, shall ex lege (by force of law) become the property of the Republic of Serbia.
Liability for potential damage
A distinctive feature of this law is that the registration of ownership rights does not guarantee the technical safety or compliance of buildings. The law merely enables citizens to exercise ownership rights and manage their property, meaning that responsibility for the safety and any potential damage to third parties remains with the owner or the builder. The state, therefore, does not assume the role of investor nor does it guarantee structural safety – such responsibility lies solely with the property owners.
Method and procedure of registration
The draft law stipulates that the registration process will be conducted through a digital platform. By applying advanced digital technologies, including aerial imagery and remote sensing, buildings will be identifiable and visible within a 3D model.
The goal is to establish a unified, digital registry as a central database within the Agency, interconnected with the Real Estate Cadastre. Municipalities will be responsible for entering and updating data within their jurisdictions, ensuring transparency, accuracy, and accessibility of information for all stakeholders.
Submission of applications
Interested individuals will submit electronic applications to the Agency via the digital platform for the registration of ownership rights to real estate. Each application pertains to a single property, and separate applications must be submitted for each additional property. When registering an auxiliary building, the applicant must indicate whether the main building is located on the same cadastral parcel.
For multi-apartment residential or mixed-use buildings, applications may be submitted via the platform by the investor, any legally interested person, the building manager, or the professional manager of the residential community.
If the Agency identifies technical discrepancies or inconsistencies with existing database information, it shall notify the applicant to correct them within 30 days. If the applicant fails to do so, the Agency will decide on the registration of ownership based on available data.
Fees for registration costs
The draft law provides for minimal registration fees, determined by zoning categories, in order to encourage citizens to report and register illegally constructed buildings:
In the City of Belgrade:
- Extra zone: €1,000
- Zone I: €800
- Zones II–III: €300
- Zone IV: €200
- Zone V: €150
- Zone VI and others: €100
In cities with over 100,000 inhabitants:
- Extra & Zone I: €500
- Zone II: €250
- Zone III: €150
- Zone IV and others: €100
In cities/municipalities with 50,000–100,000 inhabitants:
- Extra & Zone I: €300
- Zone II: €200
- Zone III and others: €100
In municipalities with fewer than 50,000 inhabitants and in villages:
- Flat fee: €100
Special consideration is given to residents living in such buildings, rural households, social welfare beneficiaries, and single parents. As part of social protection measures, no fee will be charged for registration when the applicant and their family reside in the building and the applicant is a person with disabilities, a war veteran, a parent of three or more children, a single parent, or a social welfare beneficiary.
As an additional social and demographic measure, auxiliary and economic buildings up to 500 m² are exempt from fees, while buildings exceeding 500 m² are subject to a fee of €10 per square meter.
Conclusion
The purpose of the proposed law is to finally resolve the issue of illegally constructed buildings that have not yet been recorded in the property register as of the law’s effective date. Simultaneously, the law seeks to prevent future illegal construction – stipulating that any newly erected buildings without valid permits will, by force of law, be registered as property of the Republic of Serbia or, if not in the state’s interest, demolished.
If you are the owner of an illegally constructed building, regardless of whether you have initiated a legalization process, our team of legal experts – specialized in the legalization of unlawfully constructed buildings – is available to provide full legal assistance and guidance to ensure compliance with the procedures for recording and registering your property in the Real Estate Cadastre.